Investments in the operation, maintenance, and construction of transportation infrastructure in New Hampshire often draw from many different sources and funds. Decisions about financing mixes, timelines, projected interest costs, and the effects of deteriorating or enhanced transportation infrastructure at any level of government can all influence projects.

December revenues closed out the first half of State fiscal year 2018 with a sizable increase in the surplus, but the boost’s source suggests the result might be lower receipts in the next half of the year. Revenue sources for the General and Education Trust Funds collected $7.7 million (3.3 percent) more than planned in December, which was $14.4 million (6.4 percent) more than last December and resulted in a total unrestricted revenue surplus of $18.7 million (2.0 percent) above plan for the year. However, $7.3 million of the $7.7 million surplus from December came from a single source: the Interest and Dividends Tax.

The Tax Cuts and Jobs Act passed by the United States Congress on December 20 will likely lead to an increase in the federal debt, and Congress may next seek to make changes in expenditures to reduce the impact on deficits. The official estimate from the Joint Committee on Taxation (JCT) shows the federal debt will increase by $1.46 trillion from 2018 through 2027. A macroeconomic analysis from the JCT of the U.S. House of Representative’s similar version of the bill shows that, even with potential higher levels of economic growth following reductions in individual and corporate tax rates and other changes, the debt would still increase by $1.01 trillion in the first ten years. Independent estimates also show the tax changes will very likely add to annual deficits.

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Investments in the operation, maintenance, and construction of transportation infrastructure in New Hampshire often draw from many different sources and funds. Decisions about financing mixes, timelines, projected interest costs, and the effects of deteriorating or enhanced transportation infrastructure at any level of government can all influence projects.